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ProShares Ultra Silver Message Board

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  • yourdeadmeat69 yourdeadmeat69 Apr 29, 2011 4:01 AM Flag

    TD Ameritrade's explanation of AGQ

    Not good enough to make attorney grade explanation. Explanation should explain, that because of a quirk of math, a ten percent decline from 100 to 90 must be followed by an ELEVEN POINT ONE increase to break even, resulting in decay of nearly one percent every day it declines followed by increases, and vice versa.

    That's why except in these ballistic increases day after day, which are unusual to say the least, the momentum doubles as the ETF commodity double, as rise after rise compounds itself.

    That's why AGQ skyrockets, and why ZSL is nickels and dimes. ZSL will never recover.

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    • Leveraged ETFs like AGQ are far more or far less than the sum of their parts depending if the sustained overall trend is for or against them. They also lose value due to decay in sideways markets.

      FAZ would have been such a no brainer short back in the day. Fighting the Fed on financials X3 turned out to be a very bad idea.

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